The WACC of NetJobs Group AB (NJOB.ST) is 8.2%.
Range | Selected | |
Cost of equity | 7.1% - 13.1% | 10.1% |
Tax rate | 5.9% - 13.9% | 9.9% |
Cost of debt | 4.0% - 10.4% | 7.2% |
WACC | 5.4% - 11.0% | 8.2% |
Category | Low | High |
Long-term bond rate | 2.5% | 3.0% |
Equity market risk premium | 5.1% | 6.1% |
Adjusted beta | 0.91 | 1.57 |
Additional risk adjustments | 0.0% | 0.5% |
Cost of equity | 7.1% | 13.1% |
Tax rate | 5.9% | 13.9% |
Debt/Equity ratio | 1 | 1 |
Cost of debt | 4.0% | 10.4% |
After-tax WACC | 5.4% | 11.0% |
Selected WACC | 8.2% | |
Debt/Equity | Unlevered | |||
Peers | Company Name | ratio | Beta | beta |
NJOB.ST | NetJobs Group AB | 0.87 | -1.95 | -1.09 |
AAD.DE | Amadeus Fire AG | 0.22 | 0.62 | 0.52 |
ALDLS.PA | Dlsi SA | 0.35 | 0.37 | 0.28 |
BRNL.AS | Brunel International NV | 0.22 | 1.18 | 0.99 |
EEZY.HE | Eezy Plc | 3.03 | 0.83 | 0.22 |
HAS.L | Hays PLC | 0.21 | 1.32 | 1.11 |
NBB.L | Norman Broadbent PLC | 0.3 | 0.45 | 0.36 |
PAGE.L | Pagegroup PLC | 0.16 | 1.46 | 1.28 |
PRP.L | Prime People PLC | 0.36 | 1.88 | 1.42 |
RTC.L | RTC Group PLC | 0.22 | 0.16 | 0.14 |
STEM.L | SThree PLC | 0.14 | 1.09 | 0.97 |
Low | High | |
Unlevered beta | 0.36 | 0.97 |
Relevered beta | 0.87 | 1.85 |
Adjusted relevered beta | 0.91 | 1.57 |
The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.
This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.
Here’s how we figure out the cost of equity for NJOB.ST:
cost_of_equity (10.10%) = risk_free_rate (2.75%) + equity_risk_premium (5.60%) * adjusted_beta (0.91) + risk_adjustments (0.25%)
We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.